May 8 Abbott Laboratories Inc said on
Thursday it was committed to its array of branded generics,
which it calls established products, because they are a
"fundamental leg" of its business.
Chief Financial Officer Thomas Freyman, speaking at the
annual Deutsche Bank Healthcare Conference in Boston, said
branded generics are a core part of Abbott due to their appeal
in emerging markets.
Fast-developing emerging markets like China and India have
growing numbers of middle-class patients who often prefer
generics, or drugs that have lost patent protection, that carry
the brand names of well-known drugmakers.
Revenue from Abbott's established products fell 3 percent
last year to $4.97 billion. Analysts have been grumbling for the
past year about the performance of the business, which has
dragged down overall results.
Earlier this month Abbott declined to comment on a Reuters
report that it was considering selling a big chunk of its
branded generics that have about $2 billion in annual revenue
and could fetch more than $5 billion.
CFO Freyman, who did not mention the Reuters report in his
remarks on Thursday, said about 40 percent of Abbott's total
revenue comes from emerging markets, and that there is potential
for further growth in those regions.
(Reporting by Ransdell Pierson; Editing by Jeffrey Benkoe)